Invest Atlanta annual report_final

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  • 1. ANNUAL REPORT 2011 ATLANTA DEVELOPMENT AUTHORITYURBAN RESIDENTIAL FINANCE AUTHORITYDOWNTOWN DEVELOPMENT AUTHORITY 1 1
  • 2. TABLE OF CONTENTS Message from the Mayor and Invest Atlanta Chairman 4 Letter from Invest Atlanta President and CEO 5 About Invest Atlanta 6 Executive Team 7 Redevelopment 8 Small Business and Entrepreneurship 11 Sustainability 12 Business Development 13 M A K ING Housing and Neighborhood Revitalization 15 ATLANTA Financial Statements Invest Atlanta Board Members 17 23 O NE O F AMERICA’S BEST PLACES TO LIVE AND D O BUSINESS22 3
  • 3. MESSAGE FROM THE MAYOR AND LETTER FROM INVEST ATLANTA INVEST ATLANTA CHAIRMAN PRESIDENT AND CEO The global economic recession has severely impacted our country and the City 2011 was a year of change for Invest Atlanta as we re-evaluated and refocused our of Atlanta, fundamentally changing the landscape for job creation and global vision and purpose to create jobs and ensure that Atlanta successfully competes competitiveness. Over the last two years, my Administration has been focused on in the global economy. We changed our name and logo, but we are also making moving Atlanta’s economy forward again. changes internally. The name change from Atlanta Development Authority to I am proud to say that we have come a long way. Atlanta has led the charge in Invest Atlanta represents our new mission and vision for the City of Atlanta. We developing public-private partnerships, creating alliances between agencies within are investing in Atlanta and inviting the world to invest here also. the city, and working together to elevate small businesses, communities, and key Atlanta has a new energy, and we are truly excited about sharing that message strategic industries. This citywide effort to speak with one voice has paid off. The City of Atlanta has had two years of balanced budgets—without increasing with the world. While Invest Atlanta will continue to carry out its traditional property taxes. Our cash reserves have grown from $7.4 million in January 2010 responsibilities, we are moving forward with a new and expanded mission and to an audited $94.4 million in less than 24 months. Plus, we resolved the city’s the modernization of our city’s approach to economic development. This includesKasim Reed looming pension crisis, thus addressing a $1.5 billion unfunded liability, saving the a 21st century view of local jobs for our residents, global competitiveness and Brian P. McGowanMayor, City of Atlanta city more than $270 million over the next 10 years. foreign direct investment, while leveraging the world-class assets that make Atlanta President and CEO an ideal place to live and do business. In addition to getting our fiscal house in order, we’ve been hard at work to makethe City of Atlanta the nation’s best place to live, work, and run a business. The truth is, no other city brings together the Even as we conducted our internal assessment throughout the year, business continued to move forward. We faced manymix of business and entrepreneurial opportunities, cutting-edge technology, innovative ideas and affordable lifestyle like challenges but also enjoyed many successes. These successes allowed us to be directly responsible for:Atlanta. We lead and rank in the Top 5 in everything from entrepreneurship to technology to friendliness:#1 - Minority Business Entrepreneurship #2 - Most Socially Networked • Creating 1,800 direct jobs and 3,700 construction jobs#1 - LEED Certified Buildings #3 - Fortune 500 Headquarter Locations • Preserving and returning to market over 1,200 residential units#1 - Busiest Passenger Airport in the World #3 - Cities Where Digital Media Has Clustered • Incentivizing projects totaling $400 million in public and private investment#2 - Most Wired City #3 - Business Friendly City • Facilitating the lease, sale, or use of 4 million square feet of commercial or retail space#2 - Most Entrepreneurial Activity #5 - North American City of the Future We’re proud of the work completed in 2011 and we’re ready to create even bigger and broader opportunities for ourBut we have much more to do. My goal is to let the world know that Atlanta is a global, multi-dimensional, 21st century city and its residents. To help accomplish this mission, we took the year to inventory our city’s key strategic assets. Withcity of the future—a metropolitan leader with world-class assets in key industries such as advanced manufacturing, the world’s busiest passenger airport; the convergence of key supply chain assets including rail, sea, ground, air andtechnology, health and life sciences, supply chain and logistics, film and entertainment, and green technology. We’re technology; a skilled workforce; and a growing base for key technology industries such as medical and green technology,not only committed to being one of the best places to live, offering well-rounded, balanced and high-quality of life we know Atlanta is uniquely positioned to expand its international leadership role and grow its base of companiesopportunities to our residents, but also to being a worldwide leading city to base successful multi-national headquarters, headquartered in the city. With our eye on the global playing field, Invest Atlanta will take a more focused approach toas well as nurture and grow upstarts. international trade and foreign direct investment in the coming year. Our first key initiative in this arena for 2012 is a tradeWith those objectives in mind, 2011 was a year of transition for the Atlanta Development Authority. One of our earliest mission to China March 23-31, led by Mayor Reed.shifts came in May, when I appointed Brian P. McGowan as President and CEO. As a former U.S. Deputy Assistant Most importantly, Invest Atlanta has a new mission for success: success for Atlanta’s residents, success for the large andSecretary of Commerce, Brian served as the Chief Operating Officer of the U.S. Economic Development Administration. small companies that make Atlanta home, and success for those organizations that choose to do business with our localIn addition, he also served as California’s Deputy Secretary of Economic Development and Commerce where he oversawthe State’s economic development programs. Brian’s extensive experience in working at all levels of government within companies. With that end in mind, we’ve brought on new members to the senior team including:the economic development sphere allowed him to bring with him a new vision for the City of Atlanta and its economic • William C. Cronin, Vice President of Economic Developmentand commercial development initiatives. • Douglas T. Ray, Chief Financial OfficerOne of the first bold decisions by Brian’s team was to officially change the public name of the Atlanta Development • Dr. Eloisa Klementich, Managing Director of Business DevelopmentAuthority to Invest Atlanta. The new name and logo reflects the agency’s new vision and direction, especially a renewedfocus and commitment to fostering and attracting economic development in the city. In addition, we’ve also brought on a new communications team, Finn Partners and Wilbert News Strategies, to promoteIn 2012, Invest Atlanta’s goal is to strategically implement its new direction and leverage our assets to grow our our city’s economic development assets and successes, nationally and internationally.successes across the economic and social spectrum. As the Chairman of Invest Atlanta, I am committed to maintainingand protecting the City of Atlanta’s competitive advantage as a global gateway. Attracting large global businesses, We’re excited for our future, our city, and our residents, and we look forward to a fruitful 2012.supporting entrepreneurs and start-ups, creating jobs, diversifying our key industries, increasing foreign direct investmentand creating the most diverse and talented workforce in the nation are all economic imperatives. I am confident InvestAtlanta will create a blueprint for success.4 5
  • 4. ABOUT INVEST ATLANTA EXECUTIVE TEAMVi s i onTo make Atlanta the most economically dynamic and competitive city in the world.C o re Va lues• We treat our constituents, partners, vendors and each other with respect• We recognize the contributions of our employees• We are responsible for each other’s success• We empower our employees to be creative and think big• We have an uncompromising commitment to honesty and integrity• We create a culture of excellence in everything we do H on or ab l e K as i m R e e d Br i an P . M c G ow an Ernesti ne W . Ga rey• We are good stewards of financial resources Mayor of the City of Atlanta and President and CEO Executive Vice President and COO• We set the standard for leadership in economic development Chairman of Invest Atlanta• We deliver a world-class level of customer service to everyone we encounter• We positively impact the lives of the citizens of AtlantaM i s s io nInvest Atlanta’s mission is to passionately serve the City of Atlanta and its people by strengthening Atlanta’s economyand enhancing its global competitiveness. Through progressive leadership and strategic thinking, we attract and sustaininvestment in our community in order to create increased opportunity and prosperity for our citizens.Building upon the city’s rich legacy, we leverage our unique resources to drive economic growth and job creation. Wecapitalize on our globally recognized thought leaders who have multi-disciplinary subject matter expertise.We serve as the point of connectivity for our partners and constituents locally, regionally, nationally, and globally. Webuild and lead coalitions through our expansive network of businesses, educational institutions, and civic organizations. Wi l l i am C . C r on i n V e r on i c a C . Bu r r ou g h s D ougl a s T. Ra yWE ARE INVEST ATLANTA. Vice President General Counsel Chief Financial Officer Economic Development Dr . E l oi s a K l e me n t i c h Daw n L u ke Cheryl Stri c k l a nd Managing Director Managing Director Managing Director Business Development Housing Finance Redevelopment 66 7
  • 5. REDEVELOPMENT In July, Everest College/Corinthian College opened its Atlanta West campus, a 45,000-foot structure at 2841 Greenbriar Parkway, after a $5 million renovation funded, in part, by the Campbellton Road TAD program. The campus opened toOne of Invest Atlanta’s primary goals is to revitalize and redevelop neighborhoods in the City of Atlanta, in order to serve 1,300 students and employ 95 faculty and staff members, while offering job training in dental and medical assisting,provide a better quality of life for our residents. To fulfill this objective, Invest Atlanta has at its disposal a number of medical insurance billing and coding, medical administrative assisting, and pharmacy technician vocations.important tools that allow for the creation of new jobs, facilitate renovation or rebuilding of structures in key areas, andprovide low-cost financing options. These tools are Tax Allocation Districts and the New Markets Tax Credits Program. A groundbreaking ceremony was held in December to celebrate the long-awaited commencement of construction on Fire Station 28. The 12,763 square foot facility, funded with $4.5 million in Perry Bolton TAD funds, will replace the original fire station built in 1953. Fire Station 28 is designed to accommodate a team of 10 firefighters and will feature theT ax Allo ca t io n D istricts (TAD s ) Judge Arthur Kaplan Zone 2 Atlanta Police Department Mini Precinct and the Riverside Community Room. The tentativeThe City of Atlanta is creating a vision for the future of its residents and businesses. completion date is December 2012.TADs are one of the many tools and opportunities available for developers,investors, and property owners to join and help shape this vision. Within aTAD, redevelopment costs are financed through the pledge of future incre-mental increases in property tax revenues (tax increment financing or TIF)generated by the resulting new development. TAD funds can be usedfor construction of new buildings; public infrastructure or improve-ments; renovation, rehabilitation, demolition, or expansion of existingbuildings; acquisition of capital equipment; and remediation,clearing, and grading of land.The City of Atlanta has 10 established TADs:• Atlantic Station• BeltLine• Campbellton Road• Eastside• Hollowell/ML King• Metropolitan Parkway• Perry Bolton• Princeton Lakes Bon d s• Stadium Area In 2011, the city and Invest Atlanta received positive news regarding the City of Atlanta Tax Allocation (Princeton Lakes• Westside Project) Series 2006 Bonds when Standard & Poor’s granted it an investment-grade, long-term credit rating of BBB-/ Stable. The upgrade was based on the level of completion and the closed-lien structure of the bonds. The investment-O p e ning s & G r oundbreakings grade rating reinforces the overall strength of the TAD program. In addition, the city successfully tendered $3.5 million in Series 2006 bonds, accelerating repayment of the bonds and dissolution of the district.Invest Atlanta had the privilege of celebrating multiple openings and groundbreakings of note during 2011, including theopenings of projects resulting from the inaugural transactions for the commercial corridor TAD program that launched in In August, the Atlanta City Council adopted Ordinance 11-O-1027 which allowed Invest Atlanta to refinance $130 million2010. in City of Atlanta Tax Allocation Variable Rate Bonds (Westside Project) through a direct purchase transaction with Wells Fargo Bank. The transaction resulted in a reduction of interest rate risk and the elimination of letter of credit and associated costs. In addition, Westside TAD funding of $500,000 was approved for the $1.9 million Villas at the Dome, Phase II townhome project in Vine City. Other TAD Activity Invest Atlanta approved the reallocation of nearly $1 million in Eastside TAD bond proceeds for the Memorial Drive Streetscape Improvement Project. The Atlanta Regional Commission awarded the Atlanta Housing Authority approximately $2 million in federal transportation funds through the Livable Center Initiative. Eastside TAD funds provided the required local match. The project will result in a pedestrian-friendly streetscape along Memorial Drive. Construction is underwayEUE Screen Gems Studios, a worldwide production company headquartered in New York, completed the renovation and expected to be completed during the 2nd quarter of 2012.and expansion of their 211,500 square foot film, television, and digital production studios in Atlanta with a $7.5 millioninvestment partially funded by the Metropolitan Parkway TAD. The renovated and expanded facility opened its new spacein April.8 9
  • 6. S trateg ic Pla nning f or Succes s SMALL BUSINESS AND ENTREPRENEURSHIPTo ensure the continuing momentum of our successes in 2011, a Request for Proposals was issued during the year for In 2011, the focus on small businesses in Atlanta was highlighted as the city was ranked #2 as a Top 10 Metro fora comprehensive, strategic implementation plan for the Westside TAD Neighborhood Area. The goal of the project is Entrepreneurial Activity by the Kauffman Index of Entrepreneurial Activity, and #1 by Forbes as a Top 10 Metro for Minorityto determine a viable redevelopment strategy that will result in additional job creation and quality of life enhancement. Entrepreneurs.Further, HR&A Advisors was contracted to complete a TAD program evaluation and strategic plan within each of the 10tax allocation districts to identify opportunities for best use. In July 2011, Invest Atlanta partnered with Mayor Kasim Reed and the White House Business Council to host the Atlanta Urban Entrepreneurship Forum. The Forum provided local entrepreneurs and small business owners with a full day of informative roundtables, inspirational speakers, and a resource center with local agency representation. Tyler Perry gave the keynote address and Mayor Kasim Reed ended the day with an armchair conversation outlining his vision for the city. Invest Atlanta promoted this event to our constituents and clients and staffed the event in conjunction with the Mayor’s Office. The national spotlight on Invest Atlanta was not without reason as we made an internal commitment to support start-up activity and nourish the city’s entrepreneurial ecosystem. During the year, the small business development team processed 51 small business loan applications. From these, seven loans were awarded to Atlanta-based organizations, supporting over 40 jobs. A w ar d e d L oan s : Business Location Total Investment Loan Amount Eco Express Car Wash Edgewood $2,000,000 $50,000 Life’s Essential Health Foods Cascade $50,000 $50,000 Clinton Raines dba State Farm East Atlanta $460,000 $50,000 Star Enterprises Sylvan/Dill $18,921 $18,921 Star Enterprises Sylvan/Dill $20,025 $20,025 Star Enterprises Sylvan/Dill $20,381 $20,381N e w Ma r k et s Tax Credits Peachtree Baker, LLC dba White Oak Kitchen & Cocktails Downtown $1,275,000 $125,000The New Markets Tax Credit Program is a federal program designed to spur capital investment and job creation in TOTAL $3,844,327 $334,327underserved markets. Locally, the program was employed by Imagine Downtown, Inc., a community developmentpartnership between Invest Atlanta and Central Atlanta Progress (CAP), created to promote the responsible growthand development of a vibrant and attractive Downtown Atlanta, while supporting economic development in distressed S mal l Bu s i n e s s C ommu n i t y O u t r e ac hneighborhoods. In addition to awarding loans, the small business development team continued its outreach to the community. During the year, the team providedIn August 2011, Imagine Downtown, Inc. changed its name to Atlanta Emerging Markets, Inc. (AEMI) to more accurately 261 consultations and held 11 small business information sessions designedreflect its mission to attract investments that benefit all of Atlanta. to directly interact with the city’s entrepreneurs and new small businesses, while providing them valuable information about our small business programTo date, AEMI has deployed $67 million to fund New Markets Tax Credits community investments resulting in: offerings including everything from loans to counseling to incentives. Over• Job Creation 150 people attended the sessions at the Invest Atlanta offices.• Higher Quality Jobs As part of the small business outreach, Invest Atlanta joined forces with• Jobs Accessible to Low-Income Persons or Residents 100 Urban Entrepreneurs. Our first joint initiative involved co-sponsoring• Goods and Services to Low-Income Communities and hosting a 100 Urban Entrepreneurs event, welcoming over 70 small• Flexible Lease Rates for Locally-Owned Businesses businesses and providing information on how to prepare a business plan,• Environmentally Sustainable Outcomes structure a business, and source capital. To expand upon the success of our first joint program, Invest Atlanta once again joined 100 Urban EntrepreneursAlso in August, AEMI applied for an allocation of $83.25 million in New Markets Tax Credits. The tax credits would be for a Sustainable Entrepreneurship and Economic Development event atused to attract private investment to fund redevelopment projects that create jobs in distressed neighborhoods. The Clark Atlanta University.2011 application round was the most competitive ever with 314 organizations requesting $26 billion in credits from atotal of $3.5 billion in available funds. AEMI did not receive additional credits in 2011 but will reapply at the next available In recognition of Invest Atlanta’s small business initiatives, the City ofopportunity. Atlanta awarded Invest Atlanta $200,000 in additional program funds to be disbursed to promising and qualified small businesses through the Business Improvement Loan Fund Program.10 11
  • 7. SUSTAINABILITY BUSINESS DEVELOPMENTIn 2011, Atlanta achieved multiple distinctions regarding its green initiatives, moving yet closer to its goal of becoming 2011 was an exciting year for Invest Atlanta and its business and economic development initiatives. The Businessone of the nation’s Top 10 Green Cities. These included ranking: Development division hired Dr. Eloisa Klementich as Managing Director to oversee the division’s activities.• #1 in the Siemens Green Cities Index for LEED Certified Buildings During the year, the Invest Atlanta business development team closed 17 transactions that created 1,836 direct jobs,• #6 in the Top 10 Cities for Most Energy Star Certified Buildings supporting the use of over 4 million square feet of commercial and retail space, and facilitating over $350 million in total• #7 in the Top 10 Metro Areas with the Most Clean Economy Jobs investment.Invest Atlanta is committed to continuing, expanding, and improving these achievements by facilitating the financing and 2 01 1 I n i t i at i v e sdevelopment of parks and greenspaces, brownfield remediation, public and/or private projects that enhance sustainability, Over the summer, the White House Business Council chose Atlanta as one of its locations for a Business Roundtable. Investand energy-efficient developments. Atlanta was asked to co-host this event, which provided an opportunity to discuss the state of the economy, small businessParks a nd G r eenspace needs, and President Obama’s economic policy.As part of Invest Atlanta’s goal to promote neighborhood revitalization and achieve a higher quality of life for its residents In November 2011, Invest Atlanta co-sponsored the CoreNet Global Summit at the Georgia World Congress Center, alongand visitors, multiple projects toward the expansion and improvement of the city’s parks and greenspace were completed with economic development organizations from the Metro Atlanta area. CoreNet Global is the world’s leading associationduring the year. These involved transactions benefitting six parks and three nature preserves, including: for corporate real estate (CRE) and workplace professionals, service providers, and economic developers. Invest Atlanta facilitated network opportunities with attendees from major real estate firms and corporations.• Completing four Atlanta BeltLine Park acquisitions valued at $626,000 to expand Enota Park, Boulevard Crossing Park, Lang Carson Park, and D.H. Stanton Park. The team also worked with a consultant to develop a new narrative for the city, managed the production of a video• Closing four City of Atlanta park transactions to acquire over 42 acres of land valued at $1.26 million to expand introducing the narrative and key messaging, issued a request for proposals for an economic development strategic plan Morningside Nature Preserve, North Camp Creek Parkway Nature Preserve, Jennie Drake Park, and the Swann for the City of Atlanta, and finalized an agreement with Clear Channel to promote Invest Atlanta through advertising at Preserve. Hartsfield-Jackson Atlanta International Airport.• Employing Eastside TAD funds to finalize the demolition of the former T. Marzetti Company production facility to These initiatives allowed Invest Atlanta in 2011 to surpass their stated goals of 10 project wins and 871 jobs. create 1.2 acres of visible open space along the Memorial Drive Greenway Corridor Assemblage. Price Demolition, the demolition contractor, recycled 99% of the building materials, supporting the city’s goal of becoming one of the Bu s i n e s s De v e l op me n t T r an s ac t i on s 20 11 nation’s top 10 green cities. New Wins Industry New Jobs Square Footage InvestmentB ro wnfield R emediation Porsche Headquarters 250 150,000 $70 millionImproving the look, safety, and quality of our open space is critical to a better quality of life and the future of our city. To Windham Brannon Accounting Firm 75 37,000 $3 millionmove closer to that goal, Invest Atlanta closed on two loans totaling $665,000 provided by the EPA Brownfield Revolving Warrick Dunn Family Foundation Non-Profit 5 1,500Loan Fund. The funds were used to finance the environmental cleanup of portions of the Atlanta BeltLine Eastside Trail. Music 1 Digital Media 5 1,500 Siteminis Software 65 12,500 The new Historic Fourth Ward Park, built Legoland Tourism 100 30,000 as part of the Atlanta BeltLine, remediated Air Watch Computer/Technology 200 50,000 $3 million more than 15 acres of contaminated former Proximus Software 182 8,000 indust r ia l la nd. Nanowave Technologies Manufacturing R&D 10 1,000 Williams Lea Procurement 35 10,000 $2 million Kingfisher Consulting 20 8,500 $1 million Podponics Urban Agriculture 40 McKinsey Modeling/Training Facility 5 5,000 Georgia Department of Labor Government 500 360,000 $40 million NP 10th (Hilton Garden Inn and Homewood Suites by Hilton) Tourism 100 240,000 Novare Skyhouse Apartments 50 2,000,000 $55 million City Hall East/Ponce City Market Mixed-Use Development 194 1,100,000 $180 million 17 WINS FOR 2011 1,836 4,015,000 $354 million12 13
  • 8. HOUSING AND NEIGHBORHOOD REVITALIZATION During 2011, the Housing Finance division (Urban Residential Finance Authority) successfully leveraged its portfolio of tools and achieved its goals of facilitating catalytic projects to advance the city’s economic recovery. Housing Finance preserved and/or returned to market over 1,200 residential units and funded $24 million in new transactions. H ou s i n g I n c e n t i v e s Despite the absence of a robust capital market, Housing Finance was able to deploy needed capital through an array of sophisticated financing mechanisms. With financial commitments and investments in excess of $89 million from several programs administered by Invest Atlanta, Housing Finance was able to create and sustain affordable housing options for many City of Atlanta residents. Some of our premier incentive programs include: • Tax Exempt Bonds • Housing Opportunity Bond Financing • BeltLine Affordable Housing Trust Fund • HOME Multifamily Rental • Homeless Opportunity Social Service Funds H ou s i n g F i n an c e T r an s ac t i on s f or 20 11I n te rna t io na l Business and Export T r a de P r o m o t io nWith Invest Atlanta’s new focus of positioning Atlanta in a global 21st century economy, the area of international business Funding Total Project Total Units Affordable Project Funding Source Project Typeand export trade promotion has gained new prominence. With that objective in mind, the economic development team Amount Costs or Beds Units or Bedsmoved forward with several key initiatives designed to begin promoting Atlanta’s world-class assets to the global business TRANSACTIONS/LOANS CLOSEDcommunity. Single Family Mortgage New Issue Bond Mortgage Loans Program $21,150,422 $21,150,422 Financing 164 164One of the division’s most important strategic objectives includes creating global bridges and relationships not only for Lofts at Reynoldstownthe organization itself, but also for the City of Atlanta, and its resident businesses. Partnering with the Mayor’s Office Crossing BeltLine Trust Fund $1,920,005 $5,117,505 Condominium 30 28and the Metro Atlanta Chamber of Commerce, Invest Atlanta began planning a China Trade Mission focused on creating University Community Housing Opportunityexport trade opportunities for Atlanta-based businesses and promoting foreign direct investment in Atlanta by Chinese Development Corporation Bond Program $163,063 $343,357 Single Family 2 2companies. Multi-Family Villas at the Dome II Vine City Trust Fund $876,275 $1,976,275 Rental 55 22In addition to organizing the China Mission, Invest Atlanta focused on reaching out to other organizations whose mission City of Refuge - Eden Homelessness Assessment Village II Opportunity Fund $100,000 $621,505 Center 100 100includes promoting international trade. To that end, the Invest Atlanta economic development team participated inthe U.S./Saudi Business Opportunity Summit and met with representatives of the Georgia Small Business Development TOTALS $24,209,765 $29,209,064 351 316Center’s International Trade Office. Discussions with the International Trade Office included exploring opportunities to join RESIDENTIAL UNITS PRESERVEDforces to support Atlanta-based firms in developing their export trade business. Invest Atlanta also executed a partnership Multifamily Tax Multi-Familyagreement with the U.S. Export-Import Bank. Aventine at Lindberg Exempt Bonds $16,500,000 $16,810,000 Rental 296 60 The Terraces & Highbury Multifamily Tax Multi-FamilyInvest Atlanta’s president was also appointed to the boards of the Georgia Foreign Trade Zone Association and the Court Exempt Bonds $9,650,000 $15,151,201 Rental 172 146International Economic Development Council. Multifamily Tax Multi-Family Alta Coventry Exempt Bonds $28,000,000 $35,964,374 Rental 322 65 Multifamily Tax Multi-FamilyO p p or t unit y Zones Fulton Cotton Mill Exempt Bonds $9,990,000 $17,346,806 Rental 207 83In 2011, Invest Atlanta submitted an application to the Georgia Department of Community Affairs (GDCA) to designate 33 Homelessness Multi-Family Villas of Hope Opportunity Fund $1,520,000 $1,600,000 Rental 36 36Opportunity Zones within the City of Atlanta. Opportunity Zones are an important state redevelopment tool that provideslocal companies with increased incentives and benefits for job creation, allowing companies within the zone’s boundaries TOTALS $65,660,000 $86,872,381 1,033 390to receive $3,500 per job created, per year for up to a total of $17,500 for every net new job created.During the year, the GDCA approved five Opportunity Zones including the 448-acre Fort McPherson Sub-Area, SouthsideIndustrial Park, Ponce City Market (formerly City Hall East), the Downtown Opportunity Zone, and the Midtown OpportunityZone. Twenty-eight other zones submitted in the application are still awaiting approval.14 15
  • 9. 2 0 1 1 Acco m p lishmentsAt the onset of 2011, Housing Finance made a commitment to strategically preserve Atlanta’s existing housing stock andbe a catalytic part of the city’s effort to transform and stabilize its many diverse neighborhoods.Our efforts resulted in:Homeownership opportunities for 164 working familiesin spite of the mortgage industry being stagnant. HousingFinance invested over $18 million in 1st mortgage financingoffered through the New Issue Bond Program (NIBP) coupledwith more than $3 million in down payment assistance from theHousing Opportunity Fund. Continuing to promote and offerthese two programs provided a stellar opportunity for InvestAtlanta to enhance the buying power for all who took part inthis program. FINANCIAL STATEMENTSPreservation of 1,033 units of existing housing stock which was secured by more than $65 million in bond financing.Resurgence of 87 vacant units of housing back to the market by providing over $2.1 million in financial incentives,leveraging $7.4 million in additional funding. Lofts at Reynoldstown Crossing (LaRC), one of three preservation projectsclosed in 2011, presented true collaboration between Invest Atlanta, Atlanta BeltLine, Inc. (ABI), Urban Realty, Bankof America and the Atlanta Land Trust Collaborative as ABI converted a stalled market rate condominium project intoaffordable housing for 28 households earning between $38,000 and $68,000. With more than $1.9M of the $5.1Mdevelopment cost provided from the BeltLine Affordable Housing Trust Fund, LaRC was the first project funded from theTrust Fund and provided Atlanta’s first Community Land Trust (CLT) units in over 25 years. The three CLT units, which willbe purchased by two Atlanta police officers and an Atlanta Public School teacher, will provide permanent affordability.A $100,000 grant to City of Refuge to assist in providing social services to 100 homeless women. Receipt of five applications totaling $18.25 million in funding requests. These private housing developers were all new to Invest Atlanta and embodied the true essence of public-private partnerships. 20 1 1 P r o ject Highlight s The Opportunity Downpayment Assistance Program (ODAP) has been instrumental in making the dream of homeownership a reality for Atlanta’s workforce and continues to stand the test of time. During 2011, Invest Atlanta closed 164 loans with an average purchase price of $132,000 and average income of $46,000. Since inception in 2007, Invest Atlanta has provided more than 750 down payment assistance loans using the ODAP. On Saturday December 10, 2011, a drawing was held for 28 of the 30 units at the LaRC, ranging in sales price from $137,900 to $157,900. It was an overwhelming success as all of the available units were placed under contract and a wait list was created for those who were not awarded a unit in the drawing. On average, borrowers will receive nearly $68,000 in trust fund assistance, making mortgage payments less than $1,000 per month. Invest Atlanta partnered with the city to fund its first community housing development organization, the University Community Development Corporation, to redevelop two homes in the Historic West End neighborhood for families at or below 100% of area median income. The funds were derived from the Housing Opportunity Bond Fund. Invest Atlanta invested a total of $163,000.16 17 17
  • 10. STATEMENT OF NET ASSETS - JUNE 30, 2011I n ve st A t la nt a is a component unit of t he Cit y o f At la nt a . A S S ET S Cu r r e n t asse t s:On pages 19 through 22 are financial statements for the fiscal year ending June 30, 2011 Cash and cash equivalents $7,978,545 Restricted cash and cash equivalents 32,295,934that present the combined financial data for the Atlanta Development Authority, the Investment in direct financing leases with the City of Atlanta, current portion 615,973U rb an R esidential Finance Authority a nd t he D o w nt o wn D ev elo pm ent Aut ho r i t y . Other receivables 262,198 Prepaid items 412,909 Due from the BeltLine Tax Allocation District 4,133These financial statements are a part of the annual audit report. The audit was performed Due from other funds 572,296 Due from the City of Atlanta, current portion of long term debt 790,000by Mauldin and Jenkins. A complete copy of the audit report can be accessed at Due from component units 71,253w w w.invest a t lanta.com. Due from Atlanta Housing Opportunity, Inc., current portion of long term debt 1,295,490 Due from the U.S. Department of the Treasury 5,339,473 Total current assets 49,638,204 Non cu r r e n t asse t s: Investment in direct financing leases with the City of Atlanta 55,988,135 Due from the City of Atlanta 17,730,000 Due from Atlanta Housing Opportunity, Inc. 29,520,042 Loans receivable, net of allowance 4,246,569 Other receivables, net of allowance 4,435,726 Investment in CV Underground 2,100,343 Investment in development projects 795,540 Capital assets, nondepreciable 67,375,000 Capital assets, net of depreciation 3,569,369 Prepaid rent 2,067,687 Bond issuance costs, net of amortization 1,742,855 Advances for development costs 1,319,136 Advances to other funds 3,077,130 Advances to component units 264,921 Other assets 1,525 Total noncurrent assets 194,233,978 Total assets 243,872,182 LIA B ILIT IES Cu r r e n t liab ilit ie s: Accounts payable 866,111 Bonds, notes, and loans payable, current portion 12,645,954 Capital leases payable, current 89,922 Accrued interest payable 2,153,413 Accrued liabilities 353,866 Line of credit payable 6,173,640 Unearned revenue 830,634 Pollution remediation liability 903,335 Funds held in escrow 7,987 Due to the City of Atlanta 200,000 Due to other funds 572,296 Total current liabilities 24,797,158 Non cu r r e n t liab ilit ie s: Capital leases payable 41,800 Unearned revenue 2,017,126 Other payables 1,421,692 Due to others 4,569,289 Advances from other funds 3,077,130 Bonds, notes, and loans payable 128,962,403 Total noncurrent liabilities 140,089,440 Total liabilities 164,886,598 NET A S S ET S (DEF ICIT ) Invested in capital assets, net of related debt 58,301,683 Restricted for debt services 8,099,795 Restricted for grant programs 31,169,188 Unrestricted (18,585,082) Total net assets $78,985,58418 19
  • 11. STATEMENT OF REVENUES, EXPENSES, AND STATEMENT OF CASH FLOWS - JUNE 30, 2011CHANGES IN FUND NET ASSETS - JUNE 30, 2011 Oper at ing rev enues : Cash flows from operating activities: Service, administration, and loan fees $11,383,419 Receipts from customers and grantors $7,933,479 Developer fees 981,793 Receipts from third parties (rental income) 1,034,948 Rental income 1,034,948 Income received from others for debt service payment 5,525,934 Receipts of funds from the City of Atlanta for debt service payment 3,756,937 Other revenue 1,259,279 Receipts of interest on loans 16,388 Total operating revenues 20,185,373 Payments to/from component units 44,051 Oper at ing e x p ens es : Miscellaneous receipts 134,891 Development costs 5,290,797 Receipts of developer fees 933,355 Interest on bonds, notes, and loans 6,145,616 Program expenses 1,563,110 Advances paid/received from Atlanta Development Authority - Economic development 109,710 Advances to affiliates for development costs (451,680) Depreciation and amortization 510,875 Payments from Atlanta Housing Opportunity, Inc. 1,074,971 General and administrative 7,169,527 Payments to/from Atlanta Development Authority - Total operating expenses 20,789,635 Payments to suppliers (2,571,042) Operating income (loss) (604,262) Payments to employees (5,019,274) Interest income on bank accounts 22,928 Loss on disposal of capital assets (468,977) Payments for interest (3,167,320) Transfers in 160,200 Payments for programs (1,672,820) Transfers out (160,200) Other 1,026,023 Change in net assets (1,050,311) Net cash provided by (used in) operating activities 3,072,907 Net assets at beginning of fiscal year (restated) 80,035,895 Cash flows from noncapital financing activities: Net assets at end of fiscal year $78,985,584 Receipts from City of Atlanta to cover interest expense on revenue bonds issued on behalf of the City of Atlanta for Atlanta Housing Opportunity, Inc. 1,768,997 Repayment of bonds, notes, and loan principal (1,101,653) Payments for interest (2,697,556) Repayment on bond principal on debt issued on behalf of the Downtown Development Authority (74,732) Repayment on bond principal related to revenue bonds issued on behalf of the City of Atlanta (8,110,000) Funds received on direct financing lease with the City of Atlanta 6,787,088 Payment of bond issuance cost on Recovery Zone bonds (437,864) Proceeds from issuance of Recovery Zone bonds 22,775,000 Principal reduction of Recovery Zone bonds (5,000) Transfers in 160,200 Transfers out (160,200) Repayment on line of credit (115,833) Net cash provided by (used in) noncapital financing activities 18,788,447 Cash flows from capital financing activities: Principal payment for capital lease (85,460) Net cash used in capital financing activities (85,460) Cash flows from investing activities: Receipts of interest on bank accounts 6,540 Net cash provided by investing activities 6,540 Net increase (decrease) in cash and cash equivalents 21,782,434 Cash and cash equivalents at beginning of fiscal year 18,492,045 Cash and cash equivalents at end of fiscal year $40,274,47920 21
  • 12. STATEMENT OF CASH FLOWS - CONTINUED INVEST ATLANTA BOARD MEMBERS Rec o nc iliat io n t o St a t ement o f N et As s ets: Cash and cash equivalents $7,978,545 Restricted cash and cash equivalents 32,295,934 $40,274,479 Rec o nc iliat io n o f o p er a t ing inc o me ( lo s s ) to n e t c a sh pro v i de d by ( u se d i n ) o per at ing act iv it ies : Operating income (loss) $(604,262) Adjust m ent t o r ec o nc ile o p er a t ing inc o m e ( l o ss) to n e t c a sh pro v i de d by ( u se d i n ) o per at ing ac t iv it ies : Depreciation and amortization expenses, net 86,281 Interest payments reported in operating income (loss) 921,616 (Increase) decrease in: Other receivables 443,305 Developer fees receivable (2,370,261) H on or ab l e K as i m R e e d H on or ab l e M r. Joseph A. B rown Advances for development costs (451,680) J oy c e M . S h e p e r d Advances to/from other funds   406,849 Loans receivable 30,268 Investment in real estate 530,036 Investment in development projects 93,270 Prepaid items 54,706 Due from Atlanta Housing Opportunity, Inc. 1,074,971 Due from BeltLine Tax Allocation District (4,133) Due from the City of Atlanta 1,030,434 Due from (to) component units 44,051 Due from (to) other funds (206,374) Due from U.S. Department of Treasury (3,150,251) Increase (decrease) in: Accounts payable and accrued expenses (1,027,579) Funds held in escrow 3,098 Due to the City of Atlanta 200,000 Due to primary government (130,455) M s . A n n a F oot e M s . C on s t an c e Bar kl e y - M r. Jul i a n B ene Line of credit (U.S. Department of Treasury) 3,150,251 Lewis Other payables 3,692,236 Unearned revenue (743,470) Net cash provided by (used in) operating activities $3,072,907 N o n-c ash op er a t ing a c t iv it ies Allowance adjustment for doubtful receivables $2,096,053 C ommi s s i on e r E mma M r . J . C . L ov e , I I I M s. B renda J. Dar n e l l M uha m m a d22 23
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